Chinese weather back in the chatter

Market Line January 20, 2011 Wheat futures were up a few cents Wednesday. Potential export activity was cited again with Iraq tendering for at least 100-thousand metric tons of optional origin wheat.

Continued dryness in China’s winter wheat belt was also mentioned. Some areas haven’t received any moisture for three months but Allen Motew of QT Weather for the Linn Group notes subsoil moisture is still good from floods late last summer.

Motew: “And we have had drying since then but the subsoil moisture may be what holds the crop together going into spring time. But there are reports that unless they get rain soon, or over the next month period as dormancy starts to end we will have significant problems with their wheat crop.”

On Wednesday Chicago March wheat up four cents at 7-97 ¼. March corn down 18 ¼ cents at 6-41 ¼. Portland soft white wheat by rail only, 10 to 15 cents higher at mostly 7-88. Club wheat premium mostly 25 cents. New crop August white wheat steady at 7-50 to 7-90. Hard red winter 11.5 percent protein mixed at mostly 8-68. DNS 14% protein five to 15 cents higher at 10-71.

Cattle futures were lower Wednesday. Profit taking was cited and boxed beef was mixed. Tomorrow is a cattle on feed report. February live cattle down 40 cents at 108-80. March feeders down 45 at 127-50. February Class III milk down 22 cents at 14-90. USDA reported December 2010 milk production in the major producing states up 2.8 percent from December of 2009.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.

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